eToro informs users that there may be restrictions on crypto trading on weekends
The cryptocurrency market is in a full bull market and companies offering cryptocurrency transactions are struggling to keep up with the huge demand for cryptocurrency assets. eToro, a major broker that supports trading in cryptocurrencies and other assets like stocks, ETFs, and commodities, said if demand doesn’t cool, it could cut cryptocurrency buying over the weekend. According to Bloomberg, eToro emailed its customers:
“The unprecedented demand for cryptocurrencies coupled with limited liquidity is challenging our ability to support buy orders on weekends. In light of this, we may need to place restrictions on cryptocurrency orders on weekends.”
eToro to increase bid-ask spread
According to eToro, the weekend is “the biggest challenge” in the infamous turmoil in the cryptocurrency market.
Depending on market conditions, eToro can take various measures. The platform can temporarily limit how many crypto assets each clinic can own or restrict orders. The exchange also warned users that the bid-ask spread could be “much wider” than usual.
Bloomberg reported that eToro’s cryptocurrency trading volume increased 25x compared to last January.
Recently, eToro closed its clients’ margin cryptocurrency positions in Europe and increased the minimum deposit limit for its new users from $250 to $1,000 to keep demand on the platform at a manageable level.
Even dedicated cryptocurrency exchanges like Coinbase and Binance have encountered technical problems when traders flood their platforms.
On January 8, the trading price of Bitcoin hit a record high when the world’s leading cryptocurrency hit nearly $42,000. After that peak, the cryptocurrency fell to $30,500 by Jan 11, suggesting that the price could fall quickly even in a bull market.
Bitcoin has done very well today, up 10.7% to a price of around $38,500.